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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory

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To: Haim R. Branisteanu who wrote (79055)2/16/2007 2:59:42 PM
From: Tommaso  Read Replies (4) of 110194
 
I think the sequence goes:

1. China et al. balk at adding to their US Treasuries.

2. The dollar starts slipping fast.

3. Gold and oil (and all other commodities)take off upwards reflecting the dollar.

4. Interest rates are forced up and the Fed is forced to raise them even more.

5. A vicious bear market in equities gets under way.

6. Inflation of prices for food, fuel, etc. starts to come back with a vengeance.

7. Malaise and outrage grip the country.

8. Real estate continues to tank.

9. Companies become cautious, fire workers, cut back on spending and new plans.

10. We enter an inflationary recession that is worse than anything since the 1930s, followed by . . .

11. Very slow and plodding recovery.
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